Morning Commentary: New Acorda adds outright; new EZCorp slips outright; both lag on swap

By Rebecca Melvin

New York, June 18 – Acorda Therapeutics Inc.’s newly priced 1.75% convertibles due 2021 opened up on their debut in the secondary market early Wednesday at about 102 bid, 102.5 offered after the Ardsley, N.Y.-based biopharmaceutical company priced $300 million of the seven-year senior notes at par at the rich end of price talk.

The new Acorda bond then moved up to 104 bid, 104.75 as shares moved up by about 5%, a New York-based trader said. A second trader put the new Acorda level at 104.5 bid, 105 offered with the shares at $33.95. But the issue was lagging on swap, the first trader said.

EZCorp Inc.’s newly priced 2.125% convertibles due 2019 opened up on their debut in the secondary market to about 102 bid, 102.5 offered after the Austin, Texas-based pawn store operator priced an upsized $200 million of the five year senior notes though the rich end of coupon talk and at the rich end of premium talk.

The new EZCorp deal, which was initially talked at $175 million in size, slid lower in early trading to 99 bid, 100 offered with shares at $11.76, according to a syndicate source.

The EZCorp shares were lower by about 1% from the issue reference price.

“It lost its appeal,” a New York-based trader said of EZCorp, which was also lagging on a dollar-neutral basis.

The vast majority of early trades were in the Acorda deal, however, or something like $122 million of new Acorda changing hands out of $151 million total volume, according to Trace data.

Also after the market close on Tuesday, TetraLogic Pharmaceuticals Corp. priced $47 million of 8% five-year convertible senior notes with a 10% initial conversion premium. The private offering was sold via Nomura Securities Co. Ltd.

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